Chamber Of Digital Commerce Calls Out The SEC, Argues The United States Needs A Bitcoin ETF

The Chamber of Digital Commerce goes to bat for an area bitcoin ETF in The United States. Plus, it opts for Chairman Gensler’s throat. The company doesn’t mince words in the report entitled “The Crypto Conundrum. Why Won’t the SEC Approve a Bitcoin ETF?” The Chamber of Digital Commerce argues that all of the requirements that the SEC required have actually been fulfilled, yet a Bitcoin ETF is as far from approval as when the Winklevoss twins initially asked for it in 2013.

“Since that time, the SEC has rejected each and every application seeking to list a Bitcoin ETF on a national securities exchange, citing a range of concerns that this Report will demonstrate have been fully addressed by asset managers seeking to offer responsible, transparent and regulated bitcoin exposure to retail and institutional investors.”

Before we explore their arguments, you must understand that the Chamber of Digital Commerce specifies itself as a “trade association representing the blockchain technology ecosystem. Our mission is to promote the acceptance and use of digital assets and blockchain technologies.” So, in spite of the official-looking name, it’s not a governmental organization.

What Does The Chamber Of Digital Commerce Argue?

What video games is the SEC playing? Why doesn’t the United States have an area Bitcoin ETF yet? “To date, at least 16 different companies have applied to the SEC for the right to offer a Bitcoin ETF to U.S. investors. All such requests have been denied – some multiple times,” the Chamber of Digital Commerce discusses. According to the company, the business asking for the ETF have actually done whatever in their power to adhere to the SEC and the response stays unfavorable. 

“Rather than playing a leading role in responsible adoption of new technologies and products, the United States is falling behind the rest of the world, as more countries approve such products. The United States is increasingly seen as being an undesirable place for innovators in the digital asset space to conduct operations due to the current regulatory environment.”

The Chamber of Digital Commerce alerts that capital that would’ve been bought the United States was “deployed in other, more innovation-friendly countries.” Other sophisticated economies like “Canada, Germany, Sweden, Switzerland, and most recently, Australia,” have actually currently authorized Bitcoin ETFs. And “to date there have been no reported instances of hacking or theft and no indications of market manipulation relating to these internationally listed Bitcoin ETFs,” the Chamber of Digital Commerce mentions.

BTC cost chart for 09/13/2022 on Bitstamp | Source: BTC/USD on TradingView.com

The Standard Has Been Met

The Chamber of Digital Commerce quickly takes its gloves off and opts for Chairman Gensler’s throat, “After nearly ten years of working with the SEC on the pursuit of a Bitcoin ETF, few market participants believe the true reason the SEC continues to issue denials on Bitcoin ETF applications has much connection to the legal standards the SEC cites in its denials.” As the Chamber of Digital Commerce sees it, the requirement has actually been fulfilled.

The company provides a theory:

“There is broad consensus that Chairman Gensler is now seeking oversight of the cryptocurrency exchanges through the SEC’s own rulemaking mechanism. In a February 2022 interview, SEC Commissioner Peirce echoed the widespread belief about Chairman Gensler’s intentions: “I think [Chairman Gensler] is trying to pull those crypto platforms into our orbit,” she stated.”

The Chamber of Digital Commerce likewise provides a remarkably strong service:

“Litigating against the SEC, once considered an unthinkable approach, is now one of the most viable options for eventually getting a Bitcoin ETF to market. However, litigation is inherently uncertain and litigating against the government is notoriously time consuming and expensive.”

Shots fired.

The Chamber of Digital Commerce Vs. Chairman Gensler

In case anybody missed their allegation the very first time, the Chamber of Digital Commerce discusses its theory one more time. With a lot more information:

“It is becoming clear that Chairman Gensler does not intend to approve a Bitcoin ETF until the SEC’s authority to regulate is expanded to cover the cryptocurrency exchanges, whether that be through legislation, unilateral SEC rulemaking or SEC enforcement actions, creating a belief among market participants that the true pretext for the application denials is not based on any unmet legal standard but rather as a means of effectuating a jurisdictional land grab.”

The company completes its research study with battling words:

“Unfortunately, it is becoming increasingly probable that it will take litigation or focused efforts by Congress to break through the SEC’s increasingly arbitrary and unwarranted treatment of this important investment product.”

So yeah, the Chamber of Digital Commerce doesn’t mess around. Even if its research study likewise checks out as a desperate plea for recognition. The company still opted for the Chairman’s throat, which counts.

Featured Image by Sergei Tokmakov, Esq. Terms.Law from Pixabay| Charts by TradingView